We can be pretty sure that Kiawe's grandfather is dead (he was pretty old in the flashbacks already), so the "was" in Kiawe's sentence could just mean that his grandfather was friends with Sofu while being still alive. We can't rule out any possibility at this point.
The retired Kahuna wasn't related to Hapu. Hapu's grandfather was the Kahuna before the retired one. His current condition wasn't mentioned, as far as I recall.
We don't know if Hapu's grandfather is dead in the anime or not.
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